...Wide Rating Dispersion: Risk is considered above average for the sector due to the long construction cycle and direct exposure to macreoconomic conditions. A disparity in the financial and operating performance of Brazilian homebuilders has resulted in widespread rating dispersion. Within Fitch Rating's portfolio, homebuilders' national scale ratings span across a spectrum from `BB(bra)' to `AA(bra)', while international ratings range from `B' to `BB'. Viver Construtora e Incorporadora S.A. (Viver) is an exception to these ranges. Cautious 2014 Outlook: Brazil's 5.2 million unit housing deficit does not support a stable growth pattern due to the limited access to credit for a significant portion of the population. Industry growth depends on a healthy business environment, rather than the housing deficit, and remains strongly correlated with critical variables like inflation, unemployment and interest rates and, in general, household indebtedness capacity and income availability. Most of...
